ETF Focus

Swapping Index Partners

Competition among index creators is encouraging ETF sponsors to shop around for better benchmarks—and cheaper licensing deals. What it means for investors. Also, commission-free ETF trading, and a bevy of new funds.

"Fee war" or not, there's no denying big exchange-traded fund companies compete on cost. The rivalries are extending beyond management fees to include brokerage commissions and, more recently, the cost of index licensing. The last was near the top of the agenda at Index Universe's Inside ETFs conference, the biggest ETF event of the year, held last week in Hollywood, Fla.

Mark Wiedman, head of iShares, the largest ETF sponsor, told conference-goers that the company is reviewing its indexing contracts, a...